Cryptocurrency has been around the market for a long time, and many virtual coins have established influence in the world market over this period. As a result, many Investors and professionals invested in cryptocurrency, making it a part of their portfolio and earning staggering profits.
This article will focus only on dogecoin, as this cryptocurrency being latently cheap in value, has been competing among the top market-dominating coins. However, this seeming meme-based cryptocurrency had recently surged in its value when Tesla, a car manufacturing company, purchased Dogecoins to market their product.
This purchase has made Dogecoin surge to the highest price mark it has ever reached. So, what are the reasons that made dogecoin’s prices to increment? What Significance does it have on the Dogecoin market value? You will get an answer to this question in brief below.
As per a survey of January 2020, Bitcoin is valued at 8,700 USD dollars. Bitcoins are not issued by a country’s financial institution or regulatory authority, making them free of intervention and tax and tariff-free. Check authentic websites like bitcoinsystem.app for more details about cryptocurrency trading. Ensuring the market’s stability, the rewards are halved in a certain period to ensure that the final Bitcoin is not issued until 2140.
Tesla accepting Dogecoin – A Complete Overview
On Dec 14, Elon Musk tweeted that Tesla, Inc. will support dogecoin by purchasing coins for its merchandise.
On asking Why Elon Musk chose dogecoin as a transaction medium and not any other high valued cryptocurrency like bitcoin, he replied that dogecoin is much more reliable than Bitcoin. In addition, due to dogecoin being much cheaper than Bitcoin, a larger group will be confident enough to purchase it. Another factor is that dogecoin has lower transaction traffic, making it faster and offering fewer transaction fees.
- How this affects dogecoin in the market as a Cryptocurrency
Although a surge was immense enough for dogecoin, even reaching $0.75 due to Elon Musk’s tweets about this cryptocurrency, it has never been constant and has drifted down with time. It is clearly due to dogecoin being a meme currency and not being used in actual peer to peer market transactions, but rather on charity funds or giveaways on completions as prices.
Even So, Dogecoin has been mounting, inconsistently but continuously, since its beginning. Since the 2019 pandemic, dogecoin has seen one of its highest surges ever, pointing to the fact that it still got the potential of a cryptocurrency. It is probably why Elon Musk and his company are constantly trying to uplift dogecoin from the “joke” to an actual with more offers and consumer-friendly characteristics.
- Reflection of Dogecoin in The Global Market
As stated by dogecoin’s creator, dogecoin was supposed to be a joke on cryptocurrencies such as Bitcoin and Ethereum, evident that dogecoin is a clone. Dogecoin is so deprived of what it could have been as a cryptocurrency because none of its developers or even his creator himself has made dogecoin transactions ready.
It created an opposing view in public about dogecoin being a joke currency or a failed project ready to be buried under the history of cryptocurrencies. Considering this, dogecoin has made an astonishingly large market base by buyers and traders, making dogecoin a well-established market, competing with the advanced and well-settled companies.
Dogecoin now has a market capitalization of over $25 billion, or an increment of approx. 250,000% since its first introduction in 2013 is astounding because it was never supposed to be a trading currency, along with its low market price for each coin.
In Conclusion, the surge in dogecoin was not merely because of an influencer such as Elon Musk himself. However, it is also because many buyers and investors still view dogecoin as a better alternative cryptocurrency. It is unclear whether this is new investors investing in dogecoin from lack of knowledge or understanding or some buyers want to buy some Dog coin as a joke.
What is clear is that dogecoin was not merely limited to gifts and prices, but it can also be used as an alternative to other significant cryptocurrencies and still can go toe to toe with them.